Federal Register of Legislation - Australian Government

Primary content

Act No. 157 of 1994 as made
An Act to amend the Social Security Act 1991 in relation to the signing of a new social security agreement with New Zealand
Date of Assent 13 Dec 1994
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016
 

SOCIAL SECURITY (NEW ZEALAND AGREEMENT) AMENDMENT ACT 1994 No. 157, 1994

Making Information
- Assented to 13 December 1994

SOCIAL SECURITY (NEW ZEALAND AGREEMENT) AMENDMENT ACT 1994 No. 157, 1994 - LONG TITLE

An Act to amend the Social Security Act 1991 in relation
to the signing of a new social security agreement
with New Zealand

SOCIAL SECURITY (NEW ZEALAND AGREEMENT) AMENDMENT ACT 1994 No. 157, 1994 - SECT 1
Short title etc.

1.(1) This Act may be cited as the Social Security (New Zealand Agreement) Amendment Act 1994.


(2) In this Act, "Principal Act" means the Social Security Act 1991.*1*


(Minister's second reading speech made in-
House of Representatives on 22 September 1994
Senate on 18 October 1994)
Social Security Act 1991
*1* No. 46, 1991, as amended. For previous amendments, see Nos. 68, 69, 70, 73, 74, 115, 116, 141, 175, 194 and 208, 1991; Nos. 12, 69, 81, 94, 118, 133, 134, 138, 228, 229, 230, 233 and 241, 1992; Nos. 25, 36, 61, 120 and 121, 1993; and Nos. 55, 63, 68, 78, 98 and 109, 1994.

SOCIAL SECURITY (NEW ZEALAND AGREEMENT) AMENDMENT ACT 1994 No. 157, 1994 - SECT 2
Commencement

2.(1) Subject to subsection (2), this Act commences on the day on which it receives the Royal Assent.


(2) Section 4 commences on the day on which the Agreement set out in the Schedule comes into force under Article 22 of that Agreement.

SOCIAL SECURITY (NEW ZEALAND AGREEMENT) AMENDMENT ACT 1994 No. 157, 1994 - SECT 3
General power to obtain information

3. Section 1304 of the Principal Act is amended by adding at the end of subsection (1):
"; or (d) the administration of an agreement between Australia and a foreign country on social security matters.".

SOCIAL SECURITY (NEW ZEALAND AGREEMENT) AMENDMENT ACT 1994 No. 157, 1994 - SECT 4
Repeal of Schedule 4 and substitution of new Schedule 4

4. Schedule 4 to the Principal Act is repealed and the Schedule set out in the Schedule to this Act is substituted.

SOCIAL SECURITY (NEW ZEALAND AGREEMENT) AMENDMENT ACT 1994 No. 157, 1994 - SCHEDULE

New Schedule 4 to The Social Security Act 1991
SCHEDULE 4 Section 1208
AGREEMENT
between
THE GOVERNMENT OF AUSTRALIA
and
THE GOVERNMENT OF NEW ZEALAND
ON SOCIAL SECURITY
The Government of Australia and
The Government of New Zealand
WISHING to strengthen the existing friendly relations between the
two countries, and
DESIRING to co-ordinate the operation of their respective social
security systems and to enhance the equitable access by people
covered by this Agreement to social security benefits provided for
under the laws of both countries, and
WISHING to modify the Agreement providing for matters relating to
social security which they entered into on the 31st day of October
1988 by means of a consolidated document,
HAVE agreed as follows:
PART I
GENERAL PROVISIONS
Article 1
Interpretation
1. In this Agreement, unless the context otherwise requires:
(a) "benefit" means in relation to a Party, any of the benefits,
pensions or allowances listed in Article 2(1), and includes any
amount, increase or supplement that is payable in addition to that
benefit, pension or allowance to or in respect of a person who is
eligible for that amount, increase or supplement under the
legislation of that Party;
(b) "competent authority" means, in relation to Australia:
the Secretary to the Department of Social Security;
and in relation to New Zealand:
the Director-General of Social Welfare or an authorised
representative of the Director-General;
(c) "competent institution" means, in relation to Australia:
the Department of Social Security;
and in relation to New Zealand:
the New Zealand Income Support Service of the Department of
Social Welfare;

Back to Top

(d) "financial year" means, except in the case of the first
financial year, the period from 1 July of any year to 30 June of
the next year;
(e) "first financial year" means the period from 1 January 1995
to 30 June 1995;
(f) "foreign pension" means, in relation to a person, any payment
made to that person under the national social security, social
welfare or social insurance law of a third state;
(g) "legislation" means, in relation to Australia, the law
specified in subparagraph 1(a) of Article 2; and in relation to New
Zealand, the laws specified in subparagraph 1(b) of Article 2;
(h) "month" means, except as provided in Article 12, a calendar
month, but where days are aggregated a month means 30 days;
(i) "period of Australian working life residence" means, in
relation to Australia, a period defined as such in the legislation
of Australia but also includes any period during which the person
to whom it relates, relied on Article 4(1)(b) of the agreement
signed at Canberra on 31 October 1988 or relies on Article
8(2)(b)(ii) or (iii) to be eligible for an Australian benefit;
(j) "period of New Zealand working life residence" means,
in relation to New Zealand, a period of ordinary residence in New
Zealand between the ages of 16 and 65 but includes any period
during which the person to whom it relates, relied on Article
4(1)(b) of the agreement signed at Canberra on 31 October 1988 or
relies on Article 7(2)(b)(ii) or (iii) to be eligible for a New
Zealand benefit;
(k) "ordinarily resident" has, in relation to New Zealand, the
meaning and interpretation given to it under the laws of New
Zealand;
(l) "partner" means, in relation to New Zealand, spouse;
(m) "territory" means, in relation to Australia:
Australia as defined in the legislation of Australia; and in
relation to New Zealand:
New Zealand only and not the Cook Islands, Niue or Tokelau;
and references to "Australia", "New Zealand" or the "territory" of
either shall be read accordingly;
(n) "year" means 12 calendar months.
2. Any term not defined in this Article shall, unless the context
otherwise requires, have the meaning given to it in the legislation
of either Party or, in the event of a conflict of meanings, by
whichever of those laws is the more applicable in the
circumstances.
Article 2
Legislative Scope
1. Except as provided under paragraph 2, this Agreement shall apply
to the following laws, as amended at the date of signature of this
Agreement, and to any legislation that subsequently amends,
supplements, consolidates or replaces them:
(a) in relation to Australia: the Social Security Act 1991 in so
far as the Act provides for, applies to or affects the following
benefits:
(i) age pension;
(ii) disability support pension;
(iii) widow B pension;
(iv) sole parent pension;
(v) wife pension; and
(vi) additional family payment payable to persons in receipt of
the above benefits; and
(b) in relation to New Zealand: the Social Security Act 1964 and
the Social Welfare (Transitional Provisions) Act 1990 in so far as
they provide for, apply to or affect the following benefits:
(i) New Zealand superannuation;
(ii) veteran's pension;
(iii) invalids benefit;
(iv) widows benefit; and
(v) domestic purposes benefit for solo parents.
2. This Agreement shall apply to laws or regulations which extend
the existing legislation to other categories of beneficiaries only
if the two Parties so agree in a formal amendment to this
Agreement.
Article 3
Personal Scope
1. This Agreement shall apply to any person who:
(a) is or has been an Australian resident; and
(b) is or has been ordinarily resident in the territory of New
Zealand;
and to any other person who derives rights to a benefit from a
person who is eligible for a benefit under this Agreement.
2. This Agreement shall not apply to persons who are unlawfully in
the territory of a Party.

Back to Top

3. No person shall be considered to have been resident, present,
ordinarily resident or to have acquired working life residence in
the territory of either Party for any period during which that
person was unlawfully in the territory of a Party.
Article 4
Equality of Treatment
Except as provided in this Agreement, all persons to whom this
Agreement applies shall be treated equally by a Party in regard to
rights and obligations which arise whether directly under the
legislation of that Party or by virtue of this Agreement.
PART II
PROVISIONS RELATING TO BENEFITS
Article 5
Corresponding Benefits
1. For the purposes of this Agreement:
(a) the Australian age pension corresponds to New Zealand
superannuation and veteran's pension;
(b) the Australian age pension paid to a woman who would receive
a widows benefit if she was in New Zealand shall correspond to a
New Zealand widows benefit;
(c) the Australian disability support pension corresponds to the
New Zealand invalids benefit;
(d) the Australian widow B pension corresponds to the New Zealand
widows benefit paid to persons without dependent children; and
(e) the Australian sole parent pension corresponds to the New
Zealand domestic purposes benefit for solo parents and widows
benefit paid to persons with dependent children.
Article 6
Partner Related Benefits
1. A person who receives a benefit under the legislation of either
Australia or New Zealand, due to the fact that the partner of that
person receives a benefit by virtue of this Agreement, shall be
considered to be receiving that benefit under this Agreement.
2. If a person is eligible for and is receiving a New Zealand
benefit under the legislation of New Zealand independently of that
person's partner who is receiving a New Zealand benefit by virtue
of this Agreement, that person shall not be considered to be
receiving his or her benefit under this Agreement.
3. If a person is eligible for and is receiving an Australian
benefit under the legislation of Australia independently of that
person's partner who is receiving an Australian benefit by virtue
of this Agreement, that person shall not be considered to be
receiving his or her benefit under this Agreement.
Article 7
Eligibility for New Zealand Benefits by Former Residents of
Australia
1. A person who does not meet the residence criteria for New
Zealand superannuation but would otherwise be eligible for that
benefit under the legislation of New Zealand shall be eligible for
New Zealand superannuation if that person:
(a) has reached the age of eligibility under the legislation of
New Zealand or under the legislation of Australia for a
corresponding benefit, whichever is the later age;
(b) is one of the following:
(i) ordinarily resident in New Zealand;
(ii) present in New Zealand and has the intention of remaining
in New Zealand for at least one year; or
(iii) present in New Zealand and has been present in New
Zealand for at least one year at the date of grant of that benefit;
(c) either:
(i) was an Australian resident immediately before arriving in
New Zealand; or
(ii) was, on entry into New Zealand, the holder of a valid
Australian passport; and
(d) had been an Australian resident for a period of not less than
10 years, or an aggregate of 10 years, after age 16.
2. A person who does not meet the residence criteria for any New
Zealand benefit (other than New Zealand superannuation) but who
would otherwise be eligible for that benefit under the legislation
of New Zealand shall be eligible for that benefit if that person:
(a) has reached the age of eligibility under the legislation of
New Zealand or under the legislation of Australia, for the
corresponding benefit, whichever is the later age;
(b) is one of the following:
(i) ordinarily resident in New Zealand;
(ii) present in New Zealand and has the intention of remaining
in New Zealand for at least one year; or
(iii) present in New Zealand and has been present in New
Zealand for one year at the date of grant of that benefit;
(c) either:

Back to Top

(i) was an Australian resident immediately before arriving in
New Zealand; or
(ii) was, on entry into New Zealand, the holder of a valid
Australian passport; and
(d) had been an Australian resident for a period of not less than
10 years or an aggregate of 10 years.
3. No person other than a widower shall be eligible for a domestic
purposes benefit for solo parents by virtue of this Agreement or
the legislation of New Zealand if that person's right to remain in
New Zealand is dependent on that person being an Australian citizen
or a former Australian resident, unless that person, immediately
before the claim for benefit was lodged has either:
(a) been continuously present in New Zealand for at least 26
weeks; or
(b) been ordinarily resident in New Zealand for a period of at
least 12 months.
4. Nothing in this Article or Article 8 shall affect the
eligibility of a person who is in receipt of a New Zealand benefit
under the temporary absence provisions under the legislation of New
Zealand.
5. No person shall be eligible for a New Zealand benefit at the
same time as he or she is in receipt of an Australian benefit.
6. A person shall not be eligible for a benefit under this
Agreement or under the legislation of New Zealand if that person
fails to supply the competent authority of Australia or New Zealand
with any information to which that person has access and which is
legally required to establish:
(a) eligibility for a benefit under this Agreement; or
(b) the amount which the Government of Australia is required to
reimburse the Government of New Zealand under this Agreement.
Article 8
Eligibility for Australian Benefits by Former Residents of New
Zealand
1. A person who does not meet the residence criteria for an age
pension but who would otherwise be eligible for that benefit under
the legislation of Australia shall be eligible for an age pension
if that person:
(a) has reached the age of eligibility under the legislation of
Australia or under the legislation of New Zealand, for a
corresponding benefit, whichever is the later age;
(b) is one of the following:
(i) an Australian resident;
(ii) in Australia and has the intention of remaining in
Australia for at least one year; or
(iii) in Australia and has been in Australia for one year at
the date of grant of that benefit;
(c) either:
(i) was ordinarily resident in New Zealand immediately before
arriving in Australia; or
(ii) was, on entry into Australia, a New Zealand citizen; and
(d) had been ordinarily resident in New Zealand for a period of
not less than 10 years, or an aggregate of 10 years, after age 16.
2. A person who does not meet the residence criteria for an
Australian benefit (other than an age pension) but who would
otherwise be eligible for that benefit under the legislation of
Australia shall be eligible for that benefit if that person:
(a) has reached the age of eligibility under the legislation of
Australia or under the legislation of New Zealand for a
corresponding benefit, whichever is the later age;
(b) is one of the following:
(i) an Australian resident;
(ii) in Australia and has the intention of remaining in
Australia for at least one year; or
(iii) in Australia and has been in Australia for one year at
the date of grant of that benefit;
(c) either:
(i) was ordinarily resident in New Zealand immediately before
arriving in Australia; or
(ii) was, on entry into Australia, a New Zealand citizen; and
(d) had been ordinarily resident in New Zealand for a period of
not less than 10 years or an aggregate of 10 years.
3. No person other than a widow or a widower shall be eligible for
a sole parent pension by virtue of this Agreement or the
legislation of Australia if that person's right to remain in
Australia is dependent on that person being a New Zealand citizen,
unless that person, immediately before the claim for benefit was
lodged, has either:
(a) been continuously present in Australia for at least 26 weeks;
or
(b) been an Australian resident for a period of at least 12

Back to Top

months.
4. Subject to this Agreement, a person who is ordinarily resident
in New Zealand shall not be eligible for an Australian portable
benefit where that person would be eligible for a New Zealand
benefit.
5. A person who is present, but not ordinarily resident, in New
Zealand shall not be eligible for an Australian portable benefit
after a period which exceeds the period of temporary absence
allowable for the corresponding New Zealand benefit under the
legislation of New Zealand.
6. Where, at the date this Agreement comes into force, a person is
ordinarily resident in or present in New Zealand and is in receipt
of an Australian benefit, the competent authority of New Zealand
shall calculate the rate of its benefit as if that Australian
benefit was not being received and Australia shall cease paying its
benefit to that person on any date New Zealand grants its benefit
to that person.
7. No person shall be eligible for an Australian benefit at the
same time as he or she is in receipt of a New Zealand benefit.
8. A person shall not be eligible for a benefit under this
Agreement or under the legislation of Australia if that person
fails to supply the competent authority of Australia or New Zealand
with any information to which that person has access and which is
legally required to establish:
(a) eligibility for a benefit under this Agreement; or
(b) the amount which the Government of New Zealand is required to
reimburse the Government of Australia under this Agreement.
Article 9
Calculation of Rates of Benefits
1. Except as provided in paragraphs 2 and 3, if a benefit is
payable by a Party under this Agreement, the amount of that benefit
will be determined according to the legislation of that Party.
2. If a person who is receiving a benefit under this Agreement, is
also in receipt of a foreign pension, that pension shall not be
regarded as income, but the maximum rate of benefit otherwise
payable to that person shall be reduced by the amount of the
foreign pension.
3. For the purposes of paragraph 2, if a person receiving a benefit
has a partner:
(a) in relation to Australia, each partner shall be considered to
receive one half of the total of any foreign pensions received by
either partner; and
(b) in relation to New Zealand, any foreign pension received by
that person only shall be directly deducted first from the rate of
New Zealand benefit payable to that person and then any excess
shall be directly deducted from the rate of New Zealand benefit
payable to that person's partner and any foreign pension received
by that person's partner shall be directly deducted first from the
rate of New Zealand benefit payable to that partner and then any
excess shall be directly deducted from the rate of New Zealand
benefit payable to that person.
4. Where members of a couple are in receipt of respectively, New
Zealand and Australian benefits, each Party shall, when calculating
the rate of benefit payable, disregard the amount of benefit paid
by the other Party to the other member of the couple.
Article 10
Residence in Third States
1. If a person who has been an Australian resident and has been
ordinarily resident in New Zealand is residing in a third State
with which both, or either, Australia or New Zealand have or has a
bilateral social security agreement:
(a) any benefit from New Zealand for which that person is
eligible shall not be considered as income or directly deducted in
assessing the rate of any Australian benefit for which that person
is eligible; and
(b) any benefit from Australia for which that person is eligible
shall not be considered as income or directly deducted in assessing
the rate of any New Zealand benefit for which that person is
eligible.
PART III
REIMBURSEMENT PROVISIONS
Article 11
Criteria for Reimbursement of Benefits
1. Except as provided in Article 13 and paragraph 3 of this
Article, the Government of New Zealand shall reimburse the
Government of Australia, on and from 1 January 1995, in accordance
with the provisions of Article 12, for any benefit paid to a person
who:
(a) has a period of Australian working life residence of less
than 10 years;

Back to Top

(b) either:
(i) had been ordinarily resident in New Zealand immediately
before arriving in Australia; or
(ii) was, on entry into Australia, the holder of a valid New
Zealand passport;
(c) had been ordinarily resident in New Zealand for a period of
not less than 10 years or an aggregate of 10 years;
(d) would be eligible for a corresponding benefit from New
Zealand if that person had been resident in New Zealand;
(e) is an Australian resident and in Australia or is in receipt
of a benefit by virtue of Article 8(1)(b)(ii) or (iii) or Article
8(2)(b)(ii) or (iii); and
(f) last became an Australian resident on or after 1 January
1983.
2. Except as provided under Article 12 and paragraph 3 of this
Article, the Government of Australia shall reimburse the Government
of New Zealand, on and from 1 January 1995, for any benefit paid to
a person who:
(a) has a period of New Zealand working life residence of less
than 10 years;
(b) either:
(i) had been an Australian resident immediately before arriving
in New Zealand; or
(ii) was, on entry into New Zealand, the holder of a valid
Australian passport;
(c) had been resident in Australia for a period of not less than
10 years or an aggregate of 10 years;
(d) would be eligible for a corresponding benefit from Australia
if that person had been resident in Australia;
(e) is resident and present in New Zealand or is in receipt of a
benefit by virtue of Article 7(1)(b)(ii) or (iii) or Article
7(2)(b)(ii) or (iii); and
(f) last became ordinarily resident in New Zealand on or after 1
January 1983.
3. Neither Party shall be required to reimburse the other Party for
any sole parent pension or domestic purposes benefit payable to a
person, other than a widow or widower, if that person has been in
receipt of a sole parent pension for a period of less than 12
consecutive months.
4. Working life residence shall continue to be accruable during any
period a benefit (other than age pension or New Zealand
superannuation) is paid by either Australia or New Zealand.
5. Neither Party shall be required to reimburse the other Party for
a benefit paid to a person who is outside the territory of the
Party paying the benefit for a period which exceeds the period of
temporary absence allowable under the legislation of New Zealand in
respect of that benefit or a corresponding benefit.
6. Any Australian benefit, as defined in Article 1 of this
Agreement, payable by virtue of the former Agreement at the date on
which this Agreement comes into force, shall be reimbursable by the
Government of New Zealand at a rate calculated under Article 12 of
this Agreement.
Article 12
Rate of Reimbursement of Benefits
1. The amount a Party shall be required to reimburse the other
Party for a benefit under Article 11 shall be calculated as
follows:
(a) by dividing the number of whole months of working life
residence in the reimbursing country of the person receiving the
benefit by:
(i) 480 in the case of an age pension; and
(ii) 300 in the case of any other benefit; and
(b) by multiplying the results under subparagraph (a) by the
nominal benefit rate.
2. The nominal benefit rate shall be calculated as follows:
(a) in relation to an Australian age pension, either:
(i) the amount of age pension actually paid; or
(ii) the rate of New Zealand superannuation that is payable
under the legislation of New Zealand:
A. in the case of a single person living alone the rate
payable to a single person who is living alone;
B. in the case of a single person not living alone the rate
payable to a single person who is not living alone;
C. in the case of a married person whose partner is not
receiving a wife pension, the rate payable to a married person
whose spouse is also eligible for New Zealand superannuation in his
or her own right;
less an amount equal to the income of that person as it exceeds the
applicable New Zealand superannuation thresholds under the Income
Tax Act of 1976, multiplied by the prevailing rate of the New

Back to Top

Zealand superannuation surcharge; or
D. in the case of a married person whose partner is receiving
a wife pension, the rate payable to a married person whose spouse
is not eligible for New Zealand superannuation in his or her own
right and who elects to receive the income tested rate applicable
after 1 April 1991;
whichever is the lesser amount;
(b) in relation to other Australian benefits, either:
(i) the amount of Australian benefit actually paid; or
(ii) the rate of the corresponding New Zealand benefit (after
the New Zealand income test applicable to that benefit has been
applied) which would be payable if that person was resident in New
Zealand;
whichever is the lesser amount;
(c) in relation to New Zealand superannuation, either:
(i) the amount of New Zealand superannuation actually paid,
less (except where the rate of payment is subject to an income test
under the legislation of New Zealand) an amount equal to the income
of that person as it exceeds the applicable New Zealand
superannuation thresholds under the Income Tax Act of 1976,
multiplied by the prevailing rate of the New Zealand superannuation
surcharge; or
(ii) the rate of age pension, after the income and assets tests
applicable to that person had been applied, which would be payable
if that person was resident in Australia;
whichever is the lesser amount; and
(d) in relation to other New Zealand benefits, either:
(i) the amount of New Zealand benefit actually paid; or
(ii) the rate of the corresponding Australian benefit (after
the Australian income and assets tests applicable to the benefit
have been applied) which would be payable if that person was
resident in Australia;
whichever is the lesser amount.
3. For the purposes of paragraph (2) the income on which any income
test is applied to determine the nominal benefit rate of a person
shall not include the amount of the benefit actually paid, any
additional amount or supplement or any foreign pension paid to that
person or that person's partner.
4. If a person's period of working life residence would be a number
of whole months and a day or days, the period is to be increased so
that it is equal to the number of months plus one month.
5. Neither Party shall be required to reimburse the other for any
additional amount or supplement that is paid to a person who is in
receipt of a benefit under this Agreement and in determining the
nominal benefit rate, an amount of benefit actually paid or rate of
benefit shall not include any additional amount or supplement.
6. In the case of a married couple, each partner shall be assessed
individually for the purposes of deciding whether that person's
benefit is reimbursable under Article 11 and estimating the rate of
reimbursement under this Article.

Article 13
Phase-in Provisions
1. In respect of benefits which were granted before 1 January 1995,
for the first 4 financial years, each Party shall be required to
reimburse the other Party for only a percentage of the amount which
is reimbursable under Article 12 in respect of those benefits (in
this Article called "the reimbursable amount of the historical
group"). That percentage shall be calculated as follows:
(a) 15% of the reimbursable amount of the historical group for
the first financial year ending on 30 June 1995;
(b) 40% of the reimbursable amount of the historical group for
the financial year ending on 30 June 1996;
(c) 60% of the reimbursable amount of the historical group for
the financial year ending on 30 June 1997; and
(d) 80% of the reimbursable amount of the historical group for
the financial year ending on 30 June 1998;
and thereafter shall pay the full reimbursable amount.
2. Notwithstanding paragraph (1)(a) above, the amount to be
reimbursed by a Party for the financial year ending on 30 June
1995, under that paragraph shall be at least equal to the amount
that would have been reimbursed by that Party under the 1988
Agreement between the Parties.
3. A Party shall reimburse the other Party the full amount to be
reimbursed by it under Article 12 for all benefits granted by the
other Party on or after 1 January 1995.
Article 14
Reimbursement Procedures
1. At least 2 months before the start of the financial year, while
any benefit is reimbursable under this Agreement, the competent
institution of Australia shall supply the competent institution of

Back to Top

New Zealand with a written estimate of the amount of the
reimbursement for that financial year and the competent institution
of New Zealand shall supply the competent institution of Australia
with a written estimate of the amount of the reimbursement for that
financial year, except in respect of the first financial year, when
the estimate shall be made at least 2 months before 1 January 1995.
2. The amount the competent institution of a Party is required to
pay to the competent institution of the other Party for a financial
year, during that financial year, shall equal the amount that the
other Party estimated under paragraph 1.
3. Subject to paragraph 4, the amount determined in paragraph 1
shall be payable in equal quarterly instalments by the competent
institution of a Party to the competent institution of the other
Party on 1 July, 1 October, 1 January and 1 April.
4. In regard to amounts to be reimbursed by each Party in the first
financial year of operation of this Agreement, the full amount
determined in paragraph 1 shall be payable within 3 months of 1
January 1995.
5. Within 3 months after the end of the financial year or the first
financial year:
(a) the competent institution of Australia shall provide the
competent institution of New Zealand with a written reconciliation
statement covering the amounts estimated as payable under paragraph
1 and the amounts actually reimbursable in that financial year; and
(b) the competent institution of New Zealand shall provide the
competent institution of Australia with a written reconciliation
statement covering the amounts estimated as payable under paragraph
1 and the amounts actually reimbursable in that financial year.
6. If the reconciliation statements referred to in paragraph 5 show
that an amount is payable by one Party to the other to balance the
payments in the relevant financial year, then that amount shall be
paid, together with any interest payable under paragraph 7, at the
time of the next quarterly payment referred to in paragraph 3.
7. If at the end of a financial year a Party is required to make a
payment to the other Party under paragraph 6, then interest will be
payable on the total amount outstanding. The total interest payable
shall be the sum of the four amounts of interest payable in respect
of each quarterly reimbursement period referred to in paragraph 3,
calculated using the formula in paragraph 8.
8. In respect of each quarterly reimbursement period referred to in
paragraph 3, the interest payable under paragraph 7 shall be
calculated on the following basis:
Interest Payable = NP x (N x I)/365
where:
NP = Nominal payment equal to one quarter of the amount payable by
a Party to the other to balance the payments in the relevant
financial year.
N = The number of days between the date at which the nominal
payment would have been paid if no estimation error had occurred
(ie, the commencement of the relevant quarter) and the date the
payment is settled.
I = The relevant interest rate referred to in paragraph 9.
9. For the purposes of paragraph 8, the "relevant interest rate"
shall be:
(a) in the case of refunds made by the Government of Australia,
the 26 week New Zealand Government Treasury Bill rate expressed in
per annum terms obtained in the regular Treasury Bill auction
closest in time to when the nominal payment would have been paid if
the estimation under paragraph 1 had been exact; and
(b) in the case of refunds made by the Government of New Zealand,
the 180 day Australian Government Treasury Bill rate expressed in
per annum terms applicable at the time the nominal payment would
have been paid if the estimation under paragraph 1 had been exact.
10. Any interest payable under paragraph 7 in respect of a
financial year shall be payable at the same time as the payment
under paragraph 6.
11. For administrative purposes, the gross quarterly amounts
payable by each Party (comprising the estimated reimbursable amount
for the next quarter under paragraph 3 and any nominal payment
under paragraph 6 and associated interest payments under paragraph
7) shall be netted between the two Parties.
12. For the purposes of netting in paragraph 11, the relevant cross
rate between the Australian dollar and the New Zealand dollar shall
be determined by using the mid-rates as quoted at 3 pm on the ASAP
page of Reuters, or equivalent page, 5 working days prior to the
relevant quarterly settlement date.
13. For net payment purposes, the Government of Australia shall
reimburse the Government of New Zealand in New Zealand dollars and
the Government of New Zealand shall reimburse the Government of
Australia in Australian dollars.

Back to Top

14. If a Party has forwarded to the other Party a reconciliation
statement referred to in paragraph 5, that Party shall not be
entitled to claim any further reimbursement for benefit payments
made in that financial year.
15. At any time, on the agreement of the Parties, the procedures
under this Article may be modified or substituted by an exchange of
notes.
PART IV
MISCELLANEOUS PROVISIONS
Article 15
Benefits for the Unemployed
1. This Article applies to any person who is in the territory of a
Party and whose right to remain in that territory is dependent upon
that person being:
(a) in the case of New Zealand, an Australian citizen or a former
Australian resident; and
(b) in the case of Australia, a New Zealand citizen.
2. Subject to paragraph 3, a person to whom this Agreement applies
shall not be eligible to receive benefits for the unemployed from a
Party unless the person:
(a) has been continuously present in the territory of that Party
for not less than 6 months since the date of his or her most recent
arrival in that territory; and
(b) meets those criteria which are specified for that benefit by
the legislation of that Party.
3. This Article shall not apply to a person who has been:
(a) in relation to Australia, an Australian resident; or
(b) in relation to New Zealand, ordinarily resident in New
Zealand, for the period of 12 months immediately before the date on
which the person lodges a claim for a benefit for the unemployed
in, respectively, Australia or New Zealand.
4. For the purposes of this Article only, benefits for the
unemployed means, in relation to Australia:
(i) job search allowance;
(ii) newstart allowance; and
(iii) young homeless allowance; and
in relation to New Zealand:
(i) unemployment benefit;
(ii) job search allowance;
(iii) training benefit; and
(iv) independent youth allowance.
Article 16
Mutual Assistance and Exchange of Information
1. The competent authorities and competent institutions responsible
for the application of this Agreement:
(a) shall communicate to the other Party, in relation to each
benefit granted by that Party and which is reimbursable under
Article 11, all the information required to:
(i) verify that the person in receipt of that benefit is
eligible to receive it under the legislation of the Party granting
the benefit;
(ii) verify that the person in receipt of that benefit would be
eligible for the corresponding benefit if he or she was resident in
Australia or ordinarily resident in New Zealand, as the case may
be;
(iii) verify that the amount of benefit paid is the amount
payable;
(iv) determine the rate of the corresponding benefit that would
be payable if the person in receipt of the benefit were resident in
Australia or ordinarily resident in New Zealand as the case may be;
and
(v) determine the amount of benefit that is reimbursable under
Article 11;
(b) shall communicate to each other, as soon as possible, all
information about the measures taken by them for the application of
this Agreement or about changes in their respective legislation in
so far as these changes affect the application of this Agreement;
and
(c) at the request of one to the other, assist each other in
relation to the implementation of Agreements on social security
entered into by either of the Parties with third states, to the
extent and in the circumstances specified in the administrative
arrangement made pursuant to Article 17.
2. The assistance referred to in paragraph 1 shall be provided free
of charge, subject to any administrative arrangement made pursuant
to Article 17.
3. Unless disclosure is required or permitted under the laws of a
Party, any information about an individual which is transmitted in
accordance with this Agreement to a competent authority or
competent institution of that Party by a competent authority or a

Back to Top

competent institution of the other Party is confidential and shall
be used only for purposes of implementing this Agreement and the
social security laws of either Party.
4. In no case shall the provisions of paragraphs 1 and 3 be
construed so as to impose on the competent authority or competent
institution of a Party the obligation:
(a) to carry out administrative measures at variance with the
laws or the administrative practices of that or the other Party; or
(b) to supply particulars which are not obtainable under the laws
or in the normal course of the administration of either Party.
5. Communication between the Parties, including the exchange of
information may be conducted by electronic data transfer should the
Parties so agree in an exchange of letters at any time.
6. The competent authorities of the Parties shall exchange such
information as is necessary for the operation of this Agreement or
of the social security laws of the Parties concerning all matters
arising under this Agreement, apart from matters relating to
maintenance payments or liable parent contributions.
Article 17
Administrative Arrangement
The competent authorities of the Parties shall make whatever
administrative arrangements are necessary in order to implement
this Agreement.
Article 18
Recovery of Overpayments
1. Where:
(a) an amount paid by one of the Parties to a person in respect
of a benefit exceeds the amount if any, that was properly payable,
whether by virtue of this Agreement or otherwise, in respect of
that benefit; and
(b) a benefit is payable by the other Party to that person,
whether by virtue of this Agreement or otherwise, the competent
institution of that other Party shall, if requested by the other
competent institution to do so, and in accordance with this
Article, deduct the amount equivalent to the excess payment
referred to in subparagraph (a) from the amount due in respect of
the last mentioned benefit.
2. The amount of an excess payment referred to in paragraph 1 shall
be the amount determined by the competent institution of the Party
by whom the excess payment was made.
3. The rate of deductions made in accordance with paragraph 1 from
amounts due in respect of a benefit, and any incidental or related
matters, shall be determined by the competent institution of the
Party by whom the benefit is payable, in accordance with the
legislation or practice of that Party.
4. Amounts deducted by the competent institution of one of the
Parties in accordance with paragraph 1, and any amounts received by
that competent institution pursuant to arrangements referred to in
paragraph 3, shall be remitted to the other competent institution
as agreed between the competent institutions or in any
administrative arrangement made pursuant to Article 17.
5. For the purposes of this Article, "benefit" shall also include:
in relation to New Zealand:
(a) unemployment benefit;
(b) sickness benefit;
(c) transitional retirement benefit;
(d) independent youth benefit;
(e) job search allowance;
(f) training benefit;
(g) domestic purposes benefit for caregivers and women alone;
(h) orphans benefit; and
(i) unsupported child's benefit; and
in relation to Australia:
(a) job search allowance;
(b) newstart allowance;
(c) sickness allowance;
(d) carer pension;
(e) double orphans pension; and
(f) family payments.
Article 19
Resolution of Difficulties
1. The competent authorities of the Parties shall resolve, to the
extent possible, any difficulties which arise in interpreting or
applying this Agreement according to its spirit and fundamental
principles.
2. The Parties shall consult promptly at the request of either
concerning matters which have not been resolved by the competent
authorities in accordance with paragraph 1.
Article 20
Review of the Agreement
1. The Parties may agree at any time to review the whole or any
part of this Agreement.
2. Subject to paragraph 1, the Parties shall meet for the purpose
of reviewing the implementation of this Agreement within 12 months
of the Agreement coming into force.
3. Where a Party amends, supplements or replaces its legislation,
the Parties shall consult on any consequence of that change to the
legislation and on the continuing implementation of the Agreement
including on whether any amendment to the Agreement is necessary.
4. Where a Party requests the other to meet to review this
Agreement, the Parties shall meet for that purpose no later than 6
months after that request was made and, unless the Parties
otherwise agree, their meeting shall be held in the territory of
the Party to which that request was made.
PART V
FINAL PROVISIONS
Article 21
Transitional Provisions
1. Subject to this Agreement, in determining the eligibility of a
person for a benefit payable by virtue of this Agreement, or in
determining the reimbursement liability of a Party:
(a) a period as an Australian resident and a period during which
a person was ordinarily resident in New Zealand; and
(b) any event or fact which is relevant to that eligibility,
shall be taken into account in so far as those periods or those
events are applicable in regard to that person, no matter when they
were accumulated or occurred.
2. The start date for payment of a benefit payable by virtue of
this Agreement shall be determined in accordance with the
legislation of the Party concerned but shall never be earlier than
the date on which this Agreement enters into force.
3. If this Agreement does not come into force on 1 January 1995,
the Parties shall reimburse each other from 1 January 1995, at the
rate provided under Article 12 of this Agreement, but only to the
amount provided under Article 13, for all benefits granted before
the Agreement comes into force that meet the criteria for
reimbursement under Article 12 of this Agreement.
4. Any right to a benefit outside the scope of this Agreement
acquired by a person in accordance with the provisions of the
Agreement signed at Canberra on 31 October 1988 shall continue.
5. Subject to this Agreement, when this Agreement comes into force,
the Agreement between the Government of Australia and the
Government of New Zealand providing for Reciprocity in Matters
relevant to Social Security signed at Canberra on 31 October 1988
shall terminate and persons who were receiving benefits by virtue
of that 1988 Agreement shall receive those benefits by virtue of
this Agreement.
Article 22
Entry into Force and Termination
1. This Agreement shall come into force on 1 January 1995 if,
before that date, the Parties have notified each other by exchange
of notes through the diplomatic channel that all requirements that
are necessary to give effect to this Agreement in their law have
been met. Otherwise it shall come into force on the first day of
the second month following the month in which the exchange of notes
took place.
2. Subject to paragraph 3, this Agreement shall remain in force
until the expiration of 12 months from the date on which either
Party receives from the other a written notice through the
diplomatic channel indicating the intention of either Party to
terminate this Agreement.
3. In the event that this Agreement is terminated in accordance
with paragraph 2, the Agreement shall continue to have effect in
relation to all persons who:
(a) at the date of termination, are in receipt of benefits; or
(b) prior to the expiry of the period referred to in that
paragraph, have lodged claims for, and would be eligible to
receive, benefits.
4. In the event that this Agreement is terminated in accordance
with paragraph 2, the reimbursement provisions of this Agreement
shall also continue to apply to all benefits payable at the time of
the expiry of the 12 months mentioned in that paragraph.
IN WITNESS WHEREOF, the undersigned, being duly authorised thereto
by their respective Governments, have signed this Agreement.
DONE in duplicate at Wellington this Nineteenth day of July 1994
FOR THE GOVERNMENT FOR THE GOVERNMENT
OF AUSTRALIA OF NEW ZEALAND
Peter Baldwin Peter Gresham